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TORONTO, March 24 /CNW/ - The Ontario Securities Commission
("Commission") today issued a Notice of Hearing and related Statement of
Allegations against Biovail Corporation, Eugene N. Melnyk, Brian H. Crombie,
John R. Miszuk and Kenneth G. Howling.
Staff of the Commission's allegations involve four central issues:
1. the failure to account properly in Biovail's 2001 and 2002 financial
statements for a special purpose entity that Biovail created called
Pharmaceutical Technologies Corporation;
2. the improper recognition of revenue relating to a purported "bill-
and-hold" sale of one of Biovail's drugs, Wellbutrin XL, in June of
2003;
3. the failure to correct and disclose an error in Biovail's 2003
financial statements relating to a foreign currency denominated
obligation; and
4. misleading or untrue statements made in press releases, investor
meetings and an analyst conference call concerning the reasons for
Biovail's earnings miss in October of 2003.
Staff of the Commission further allege that Biovail provided misleading
responses to questions that Staff posed regarding three of these issues in the
course of a continuous disclosure review conducted in 2003 and 2004.
The first appearance in this matter will be held at 2:00 pm. on Tuesday,
April 22, 2008 in the large hearing room of the Commission located on the 17th
Floor, 20 Queen Street West, Toronto. The purpose of this first appearance is
to set a date for the hearing.
A copy of the Notice of Hearing and Statement of Allegations is made
available on the Commission's website (www.osc.gov.on.ca).
Staff of the Commission acknowledge the assistance and cooperation of the
U.S. Securities and Exchange Commission in this matter.